Dubai's DEWA inks $562m deal with Siemens

Dubai Electricity and Water Authority, the emirate's state-owned utility, said on Sunday it has awarded a AED2bn ($562m) maintenance contract to Siemens International.

It said the deal was one of its "strategic effective partnerships to enhance efficiency, improve quality, reduce costs and ensure efficient operation of its substations.

The long-term maintenance programme is for the maintenance of six gas turbines and six power generators in the biggest power generation and water desalination station at Jebel Ali.

"The total cost of the contract is AED2.063bn and will last for 12-15 years," said Saeed Mohammed Al Tayer, managing director and CEO of DEWA.

According to the contract, Siemens will provide manpower, equipment, tools, spare parts required for the overhaul of the turbines and generators so they can operate for about 100,000 hours.

Al Tayer said: "This contract will greatly contribute to achieving the highest levels of operational availability and reliability, especially during the summer months."

Earlier this month DEWA said it plans to raise AED4.5bn in debt next year.

DEWA, which was recently upgraded to investment-grade by ratings agency Moody's, will raise the funds via Islamic bonds, or sukuk, export credit agencies and syndication with the proceeds used primarily for debt repayment as well as investments, Al Tayer told reporters.